In most businesses, labor costs are the largest expense. In Veterinary Practice, that is true in most practices. In the Merck-Henry Schein National Equine Veterinary Economic Study, it was evident that most practices did not alter the number of full time equivalent veterinarians or support staff that they employed, in spite of a dramatically declining economy.
The chart above illustrates that the number of veterinarians employed throughout the declining economic situation remained largely unchanged.
The second chart illustrates that in spite of the declining economy, most practices did not reduce head count to ensure their own profitability.
It is important for veterinary practices to manage for profitability even during down economic times to ensure the company's health. Knowing and managing your optimal staffing levels is important to maintain a healthy practice.
